Does anyone use a logbook system of some sort to record use of private car for work ? What is required for a business tax return ?
I will be self-employed this year and was told I can declare .70 rappen per KM for work-related travel. For example, I need to use my own car for shopping, taking stuff to the recycling station, visiting clients or travelling between offices/workplaces. I have also been told that I can back-date expenses to the previous year for the startup phase of my business.
I would preferably back-date this so can't record the mileage exactly, but I would like to see if I can put together enough evidence (eg. meeting dates and the travel measurements from google maps).
And then, for future use, I need to start to really log the travel accurately for tax purposes, so if anyone has a good system they use, that would help.
Thank you!
Someone will come along with more knowledge but my reaction to this is, would it not be easier if you use the car a lot for business purposes to just "sell" the car to your business and charge yourself the % for private usage? This way all car expenses (repairs, tire changes etc) can be deducted from your business expenses.
Also, our experience with our own business is that the tax man is not too bothered with details as long as all looks fine - so don't get too stressed if the recording is not 100% correct, I do not think it can really ever be in these situations.
Thanks Kri. I had the same thought about placing the car under the 'business' expenses. I'll need to ask a business advisor on that one....
But does that approach make you liable for the private use of a company vehicle to be taxed at a relevant % of the vehicle purchase price per month?
Yes, exactly. So I need to check with a tax agent to see which is a better option for me....
The Swiss are not as anal as the UK !!
Put the car in the business and then you are charged, (i think in VD) is it 8% of the new car value that is added to your taxable income to cover private use.
They really are not interested in all the finer details, the objective is to make it fair and easy rather than impossibly complicated.
Ask your accountant, he will immediately tell you what to do.
Well since you are self-employed it does not really matter if you put the car in the business or not, it’s one and the same thing.
As an Irish accountant, I always followed the Irish approach, put everything in and let the IOT argue to take it back out, with the Bernese authorities. And we always came to an agreement on it. They were always willing to negotiate on it. After a couple of years we had a kind of unofficial schedule agreed. I’d put all the phone bills in and they’d add back 10% and so on.
For a car, I put in total cost of operating the car for the year plus 20% of the price of the car as wear and tear. I think they used to add back around 15% for private usage.
The only thing that was a big no no, was claiming expenses no incurred in that tax year.
I had inspections on three occasions over 30 years, so they definitely do check. And they use the same trick as the Irish/UK ones - cross referencing invoices between you and the businesses you interact with. If there is a missing transaction you can expect things to get very difficult very quickly.
I’ve dealt with Irish, UK and Swiss and I’d saw the Swiss are most flexible in their approach.
Our company bought a top of the range Range Rover Sport and we agreed with the tax office after some negotiation they would add a hypothetical CHF 3,000 to our personal income. So I suggest you or your tax accountant do the same.
Both here and in the UK, I recorded the start and end of the journey and purpose. And claimed the cost back. When I use my car on business for my employer, I fill in a similar form. Very simply. Nothing to worry about.
My accountant advised a company car, for the mileage I do, wasn't worth it.